Slide 1: Q2 2019 Conference Call
Q2 2019 Conference Call Veeco Instruments Inc. August 5, 2019
Slide 2: Safe Harbor
Safe Harbor To the extent that this presentation discusses expectations or otherwise makes statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These item
Slide 3: CEO Overview
CEO Overview William J. Miller, Ph.D. 3 Q2 2019 Conference Call | © 2019 Veeco Instruments Inc.
Slide 4: Q2 2019 Highlights
Q2 2019 Highlights Q2 $78.2M $97.8M $(1.6M) (6¢) Results Bookings Revenue Non-GAAP Non-GAAP EPS Operating Loss ▪ Executed according to guidance - ▪ Generated $10M in cash narrowed losses ▪ Ending cash and short-term ▪ Strength in Data Storage and EUV investments grew to $247M products Focused on Gro
Slide 5: Executing 2019 Growth Opportunities
Executing 2019 Growth Opportunities Front-End Compound Advanced Semiconductor Semiconductor Packaging EUV Mask Blanks 3D Sensing / VCSEL Wafer Level Packaging Ion Beam Deposition MOCVD Lithography Front-End Wafer Processing Laser Annealing EUV – Extreme Ultraviolet 5 Q2 2019 Conference Call | © 2019
Slide 6: 2019 Focus
2019 Focus Innovate Penetrate Improve technology leadership market growth profitability ▪ Solve tough materials ▪ EUV Mask Blanks – Ion Beam ▪ Improve gross margin problems Deposition ▪ Reduce operating expenses ▪ Execute product roadmaps ▪ Leading-Edge Front-End Semiconductor – Laser Anneal ▪ 3D Se
Slide 7: CFO Financial Review
CFO Financial Review Sam Maheshwari 7 Q2 2019 Conference Call | © 2019 Veeco Instruments Inc.
Slide 8: Q2 2019 Revenue by Market & Region
Q2 2019 Revenue by Market & Region Revenue by Market Revenue by Region Front-End LED Lighting, Display Semiconductor United States ROW & Compound Semi 25% 27% 10% 40% $97.8M Advanced Packaging, MEMS & RF Filters Scientific & 17% EMEA China Industrial 13% 20% 48% 8 Q2 2019 Conference Call | © 2019 Ve
Slide 9: Operating Results
Operating Results GAAP Non-GAAP $ millions (except per share amounts) Q1 19 Q2 19 Q1 19 Q2 19 Revenue $99.4 $97.8 $99.4 $97.8 Gross Profit 34.7 36.3 35.2 36.9 Gross Margin 34.9% 37.1% 35.5% 37.8% Operating Expenses 48.9 47.5 40.0 38.5 Operating Income/(Loss) (14.1) (11.2) (4.8) (1.6) Net Income/(Los
Slide 10: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights $ millions Q1 19 Q2 19 Cash & Short-Term Investments 237 247 Accounts Receivable 75 59 Inventories 148 140 Accounts Payable 36 22 Long-Term Debt 290 294 Cash Flow from Operations (22) 14 DSO (days) 68 54 DOI 212 210 DPO 52 33 Cashflow from Operations Driven by
Slide 11: Q3 2019 Guidance
Q3 2019 Guidance GAAP Non-GAAP Revenue $95M - $115M $95M - $115M Gross Margin 36% - 38% 37% - 39% Operating Expenses ~$49M ~$39M Net Income (Loss) $(18M) - $(9M) $(5M) - $4M Earnings (Loss) Per Share $(0.40) - $(0.20) $(0.10) - $0.10 . A reconciliation of GAAP to Non-GAAP financial measures can be f
Slide 12: Q&A
Q&A 12 Q2 2019 Conference Call | © 2019 Veeco Instruments Inc.
Slide 13: Reconciliation Tables
Reconciliation Tables 13 Q2 2019 Conference Call | © 2019 Veeco Instruments Inc.
Slide 14: Note on Reconciliation Tables
Note on Reconciliation Tables These tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: sh
Slide 15: Supplemental Information— Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation US$ millions Q1 19 Q2 19 US$ millions Q1 19 Q2 19 US$ millions, except per share Q1 19 Q2 19 amounts Net Sales $99.4 $97.8 GAAP Net Income (Loss) $(18.5) $(15.6) GAAP Basic EPS (0.40) (0.33) GAAP Gross Profit 34.7 36.3 Add: Share-Based Comp 3.
Slide 16: Q2 2019 Actual: Reconciliation
Q2 2019 Actual: GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-Based In millions, except per share amounts GAAP Compensation Amortization Other Non-GAAP Net Sales $97.8 $97.8 Gross Profit 36.3 0.6 36.9 Gross Margin 37.1% 37.8% Operating Expenses 47.5 (4.0) (4.2) (0.8) 38.5 Operating Inco
Slide 17: Q3 2019 Guidance: Reconciliation
Q3 2019 Guidance: GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-Based In millions, except per share amounts GAAP Compensation Amortization Other Non-GAAP Net Sales $95–$115 $95–$115 Gross Profit 35–44 1 — — 36–45 Gross Margin 36%–38% 37%–39% Operating Expenses ~$49 3 4 2 ~$39 Operating
Slide 18: Thank You
Thank You Veeco Instruments www.veeco.com Ver:11072018